It seems like every major city and even smaller cities I've driven through, I've noticed some sort of road, bridge, or tunnel repairs and upgrades. Even in Redondo Beach, California, the sidewalk along the cliffs above the beach is being torn up, and according to the locals, is being paid for by Federal funds. The beachgoers are hoping the replacement will be done by summer.
Many publicly traded companies are benefiting from all this construction. There are many ways of investing in this sector, and according to the list of infrastructure stocks that WallStreetNewsNetwork.com recently updated, there are the suppliers, the contractors, and the consultants. Many of these companies are involved in additional industries, such as energy.
Michael Baker Corporation (BKR) provides professional engineering and consulting services for the public and private sector covering the life cycle of infrastructure. The stock trades at 14.9 earnings, and 11.7 times forward earnings, with a PEG ratio of 1.09.
URS Corporation (URS) provides consulting, engineering, and construction services for surface, air, and rail transportation networks, ports and harbors, and water supply and water treatment systems. The stock has a very reasonable price to earnings ratio of 14, a forward P/E of 12.2, with a price earnings growth ratio, also known as a PEG ratio, of 1.23.
CEMEX (CX), based in Monterrey, Mexico, is the world's largest building materials supplier and third largest cement producer.The company recently generated negative earnings and has a forward P/E of 37.7.
Disclosure: Author does not own any of the above.