2 Infrastructure Stocks to Buy on the Dip

NYSE: CRH | CRH PLC ADR News, Ratings, and Charts

CRH – Even though the vote on the infrastructure bill has been delayed, analysts remain optimistic about it passing. Moreover, the infrastructure sector is expected to grow significantly in upcoming months as economic activities gradually increase. So, it could be wise to bet on fundamentally sound infrastructure stocks like CRH plc (CRH) and Terex (TEX), which are trading below their 52-week highs but have the potential to generate significant ROI in the near term.

The market reacted quite positively when the Senate passed the infrastructure bill on August 10, 2021. However, House Speaker Nancy Pelosi and her leadership team have delayed the vote on the roughly $1 trillion bipartisan infrastructure bill, as Democrats remain divided over a separate but politically linked larger spending measure. If passed, this spending will significantly boost the infrastructure sector’s growth.

On the other hand, as roads, railways and ports, and internet infrastructure need regular maintenance and development, the infrastructure sector is expected to grow in the upcoming months.

CRH plc (CRH) and Terex Corporation (TEX) are two quality infrastructure stocks trading well below their 52-week highs but have solid upsides. So, it could be wise to add these stocks to your portfolio now.

CRH plc (CRH)

Headquartered in Dublin, Ireland, CRH manufactures and distributes building materials. The company’s segments include Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products, and Asia. Also, its products include cement, lime, aggregates, ready-mixed and precast concrete, and asphalt products.

CRH announced on September 30 that it had completed the latest phase of its share buyback program, returning a further $0.3 billion of cash to shareholders. It also announced that it has entered into arrangements with UBS A.G., London Branch, to repurchase ordinary shares on CRH’s behalf for a consideration of up to $300 million.

CRH’s sales came in at $14.04 billion for the six months that ended June 30, 2021, up 15% year-over-year. The company’s gross profit came in at $4.61 billion, up 19.7% year-over-year. Its group profit came in at $815 million, up 100.7% from the prior-year period. Also, its EPS increased 95.1% year-over-year to 99.5 cents.

For fiscal 2021, analysts expect CRH’s EPS and revenue to increase 26.3% and 8.9% year-over-year to $3.05 and $29.78 billion, respectively. The stock has soared 29.7% over the past year to close yesterday’s trading session at $46.74. It is currently trading 13.4% below its 52-week high of $53.99, which it hit on August 26, 2021.

CRH’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall grade of B, which indicates a Buy rating in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

CRH has a B grade for Stability, Sentiment, and Quality. Within the Industrial – Building Materials industry, it is ranked #8 out of 55 stocks. Click here to see additional grades for Momentum, Value, and Growth.

Click here to check out our Industrial Sector Report for 2021

Terex Corporation (TEX)

TEX manufactures and sells aerial work platforms and materials processing machinery. It operates through two segments: Aerial Work Platforms (AWP) and Materials Processing (MP). In addition, it offers financing solutions to assist customers in the rental, leasing, and acquisition of its products.

TEX paid a quarterly dividend of $0.12 per share on September 20. Also, the company has been paying dividends consecutively for seven years. So, this represents its financial strength.

For the second quarter that ended June 30, 2021, TEX’s net sales increased 50.4% year-over-year to $1.04 billion. The company’s gross profit came in at $231.6 million, up 116.2% year-over-year. Its net income came in at $73.90 million compared to a loss of $9.2 million in the prior-year period. Also, its EPS came in at $1.04 compared to a loss per share of $0.13 in the year-ago period.

Analysts expect TEX’s EPS to come in at $3.03 in the current year, representing a 2,230.8% year-over-year increase. The company’s revenue is expected to rise 27.1% year-over-year to $3.91 billion in fiscal 2021. Over the past year, the stock has gained 117.5% to close yesterday’s trading session at $42.10. It is currently trading 24.3% below its 52-week high of $55.60, which it hit on May 10, 2021.

TEX’s POWR Ratings reflect solid prospects. The company has an overall grade of B, which equates to a Buy rating in our proprietary ratings system.

In addition, it has an A grade for Growth and Value. TEX is ranked #17 in the same industry. Click here to see additional grades for TEX (Stability, Quality, Sentiment, and Momentum).

Note that TEX is one of the few stocks handpicked by our Chief Value Strategist, David Cohne, currently in the POWR Value portfolio. Learn more here.

CRH shares were trading at $46.91 per share on Friday afternoon, up $0.17 (+0.36%). Year-to-date, CRH has gained 12.92%, versus a 16.51% rise in the benchmark S&P 500 index during the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CRHGet RatingGet RatingGet Rating
TEXGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

Bullish or Bearish Stock Set Up?

The S&P 500 (SPY) record highs sounds pretty darn bullish on the surface. Yet as we dig below the surface there are some curious signals that point more Risk Off. This is especially true as we come into the next Fed meeting after a round of data that points to inflation still being too high...only further delaying the first rate cut. What does this all mean for stocks from here? Steve Reitmeister offers his latest views on the market outlook along with a preview of his top picks to stay on step ahead of the market. Read on for more...

Unveiling Adobe (ADBE) Q2 Earnings: What Lies Ahead for Investors?

Software giant Adobe Inc. (ADBE) has released its second-quarter earnings, revealing double-digit growth in both revenue and profits. Yet, concerns arise around the complexities of navigating growth in the face of advancing AI technologies. Let’s analyze ADBE’s recent performance and assess key fundamentals to uncover what lies ahead for investors…

3 AI Stocks to Invest in for the Next Technological Revolution

The AI market is experiencing a significant growth trajectory, driven by widespread application across various industries. Hence, it could be wise to invest in top AI stocks, Alphabet (GOOGL), Meta Platforms (META), and Alibaba Group Holding (BABA) for the next technological revolution. Read more...

Analyzing Broadcom’s (AVGO) Q2 Earnings: Worth Investing?

Driven by a surge in demand for its AI products, Broadcom (AVGO) reported robust earnings in its latest quarterly results, exceeding expectations on both top and bottom lines. However, is the stock’s recent announcement of a 10-for-1 stock split worth investing in? Keep reading to find out…

Stock Alert: Breakout or Fake Out?

The S&P 500 (SPY) officially made new highs this week. Perhaps a reason to celebrate more gains on the way...or perhaps there are signs this move is hollow leading to more downside soon on the way. To help solve this riddle, 44 year investment veteran Steve Reitmeister shares his views along with a trading plan and top picks to stay on the right side of the action. That is what Steve Reitmeister will cover in his latest commentary below. Read on for more...

Read More Stories

More CRH PLC ADR (CRH) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CRH News