Congressional negotiations are ongoing over an infrastructure package. However, there was a big breakthrough last week as Senate moderates on both sides of the aisles came to an agreement that President Biden said he would sign.

It’s going to be a major catalyst for several cyclical and materials stocks. These stocks have had nice rallies over the past year, but they remain quite cheap on a valuation basis which means they have more upside.

Without further ado, let’s take a look at the following infrastructure stocks: Cemex, S.A.B. de C.V. (CX), and U.S. Concrete (USCR).

CX

CX is one of the world’s top cement businesses. With a production capacity of nearly 80 million metric tons, CX is clearly a powerhouse in its industry. The company operates four subsidiaries across four continents. These subsidiaries produce, distribute, market, and sell cement, linker, aggregates, and ready-mix concrete. CX is also the globe’s top white cement producer.

CX has a forward P/E ratio of 12.14. This ratio is an indication that the stock is fairly priced or possibly even underpriced. CX has a beta of 1.26. This is a reasonable beta that indicates the stock probably won’t fluctuate too much should the market undulate. CX is currently priced at around $8.45. The stock’s 52-week high is $9.09. CX’s 52-week low is $2.61.

Take a look at CX’s POWR Rating grade as well as its components and you will be impressed. CX has an A overall POWR Rating grade indicating it is a Strong Buy. CX has an A Sentiment grade along with Bs in the Growth, Value, and Momentum components. If you would like to learn how CX grades out in the Quality and Stability components, you can find out by clicking here.

CX is ranked first of 53 publicly traded companies in the Industrial – Building Materials space. If you would like to find out more about the stocks in the Industrial – Buildings Materials segment, you can do so by clicking here.

It is interesting to note CX has an average of nearly 12% analyst upside potential across the prior 170 days. Across this time period, the average analyst price target for the stock has increased by $1.62.

USCR

USCR provides ready-mixed concrete along with related products. The company’s clients are in U.S.-based construction industry businesses. USCR’s geographic footprint includes Texas, Oklahoma, the mid-Atlantic states, and most of the northeast.

USCR has a forward P/E ratio of 28.42. This elevated P/E ratio indicates the stock might be slightly overpriced. USCR has a reasonable beta of 1.35, meaning it should hold fairly steady if the market spikes or slides downward.

USCR has a D POWR Rating grade. The stock has Ds in the Quality, Sentiment, and Growth components. The stock has a B Momentum grade. You can find out how USCR fares in the Value and Stability components of the POWR Ratings by clicking here.

Of the 53 stocks in the Industrial – Building Materials segment, USCR is ranked 49th. Click here to find out more about this sector.

The analysts do not have high hopes for USCR. The average analyst target price for the stock is $67.93, meaning it has around a 9% downside. The highest analyst target price for USCR is $80 while the lowest analyst target price for the stock is $60. The stock’s average target price across the prior 85 days has increased by slightly more than $18.

Of the eight analysts who have issued USCR recommendations, zero believe the stock is a Strong Buy yet no analysts believe the stock is a Sell or Strong Sell. Exactly two analysts view USCR as a Buy and the rest consider the stock to be a Hold.

Which is the Better Buy?

CX is clearly the better of these two infrastructure stocks. CX has an A POWR Rating grade. USCR has a D POWR Rating. Roll with CX and you will likely be happy with the result.