For immediate release
Chicago, IL – December 22, 2021 – Zacks.com announces the list of stocks featured on the Analyst Blog. Every day, Zacks Equity Research analysts discuss the latest news and events affecting stocks and financial markets. Stocks recently featured on the blog include: Commercial Metals Company CMC, Crane Co. CR, Altair Engineering Inc. ALTR, Clearfield Inc. CLFD, and TimkenSteel Corporation TMST.
Here are the highlights from Tuesday’s analyst blog:
Top 5 Actions to Gain in 2022 from US Infrastructure Spending
Wall Street has been suffering since Black Friday, as the resurgence of the coronavirus with its new variant, Omicron, has shaken the confidence of market participants around the world. Market participants appear nervous that the massive fiscal stimulus fueled by the coronavirus has ended and the Fed has decided to systematically remove monetary stimulus paving the way for the first rate hike next year since March 2020.
At this stage, the Biden administration’s new bill to spend $ 1 trillion on infrastructure development will act as a new catalyst for Wall Street. Several companies will benefit from this project. Among them stand out Trade metals, Crane Co., Altair Engineering,Free field Y TimkenSteel.
Biden infrastructure project
On November 15, President Joe Biden signed a $ 550 billion bipartisan infrastructure bill in addition to previously approved funding of $ 450 billion over five years. With this the bill has become a new law. The law aims to establish the United States with the best economic infrastructure in the world. Total spending can reach $ 1.2 trillion if the plan is extended to eight years.
The infrastructure development act will provide $ 100 billion for roads, bridges, and other major projects. It will invest $ 66 billion in freight and passenger trains, including possible upgrades to Amtrak. The project will provide $ 11 billion to reduce car accidents and fatalities through a “Safe Streets for All” program. The law allocates $ 39 billion to modernize public transportation and improve access for people with disabilities.
Additionally, the law has proposed $ 66 billion for passenger and freight trains, $ 15 billion for electric vehicles and buses, and $ 17 billion for airports, ports, and waterways. The project will invest $ 50 billion in water infrastructure and $ 55 billion in clean water projects. In addition, $ 65 billion will be invested in high-speed Internet (broadband), $ 21 billion in environmental cleanup, and $ 73 billion in energy infrastructure.
Future Wall Street Driver
The recently introduced massive infrastructure development project will be a major catalyst for the US equity markets in 2022. Various segments of the economy, such as basic materials, industrials, telecommunications and utilities, will benefit enormously from more creation of employment for the economy.
In addition, the White House has also lobbied the United States Congress to quickly pass legislation providing $ 52 billion to help computer chip makers and alleviate shortages of vital components for a variety of industries. ‘
The global economy is still suffering the effects of different variants of the coronavirus and the United States is no exception. Furthermore, the inflation rate in the United States has soared to a higher level in four decades.
In the absence of the pandemic-induced fiscal and monetary stimulus, the Biden administration’s two aforementioned development plans, infrastructure projects, and the proposed CHIPS Act to usher in a resurgence of semiconductor manufacturing in the United States, They will play the role of future catalysts for the stock market.
Our best picks
We narrowed our search to five actions that are likely to benefit from the Biden administration’s infrastructure development legislation. These companies have strong growth potential for 2022 and have seen positive revisions to earnings estimates in the past 60 days. Each of our picks has a rank of Zacks No. 1 (Strong Buy) or 2 (Buy). You can see Today’s full list of Zacks # 1 rank stocks here.
Trade metals It is poised to benefit from robust demand for steel, driven by high spending in the residential and construction sectors in North America and the recovery in the manufacturing sector. Steel sales volumes in Europe are expected to remain healthy due to increasing demand from the industrial and construction end market.
Construction activity in Poland remains particularly strong thanks to help from residential markets. These factors will drive steel shipping levels in North America and Europe, and will support CMC’s results in fiscal 2022.
Zacks Rank # 2 CMC has an expected earnings growth rate of 10.5% for the current year (ending August 2022). The Zacks Consensus Estimate for current year earnings improved 0.5% over the past 7 days.
Crane manufactures and sells industrial engineering products in the United States, Canada, the United Kingdom, continental Europe, and internationally. Crane Co. is poised to take advantage of your diverse portfolio and efficient management team. CR has exposure in many end markets such as non-residential construction, aerospace, electronics, automated payment solutions, chemical, energy, and various general industries.
Zacks Rank # 2 CR has an expected earnings growth rate of 13.2% for next year. The Zacks Consensus Estimate for its earnings next year has improved 4% over the past 60 days.
Free field designs and manufactures the FieldSmart fiber management platform, including its next-generation fiber distribution system and fiber scalability center. CLFD also provides a complete line of fiber and copper assemblies for external and controlled plant environments.
Zacks Rank # 1 Clearfield has an expected earnings growth rate of 25.9% for the current year (ending September 2022). The Zacks Consensus Estimate for current year revenue has improved 8.8% over the past 60 days.
TimkenSteel is dedicated to the manufacture of alloy steels, along with carbon steel and micro-alloys. TMST provides precision air cast alloy steel bars, tubes and components, as well as value-added services, including heat treating and machining in the United States and internationally. TimkenSteel operates in SBQ steel bars, seamless mechanical steel tubes and billets; and precision value-added product and service segments.
Zacks Rank # 1 TimkenSteel has an expected earnings growth rate of 0.7% for next year. The Zacks Consensus Estimate for next year’s earnings has improved 10.2% over the past 60 days.
Altair Engineering is focused on the development and broad application of simulation technology to synthesize and optimize designs, processes and decisions for business performance. Altair Engineering operates through two segments, Software and Client Engineering Services.
Zacks Rank # 2 ALTR has an expected earnings growth rate of 12.3% for next year. The Zacks Consensus Estimate for next year’s earnings has improved 4.9% over the past 60 days.
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Past performance is not a guarantee of future results. Inherent in any investment is the potential for loss. This material is provided for informational purposes only and nothing contained herein constitutes legal, tax, accounting, or investment advice, or a recommendation to buy, sell, or hold a security. No recommendation or advice is given as to whether any investment is suitable for a particular investor. It should not be assumed that investments in identified and described securities, companies, sectors or markets were or will be profitable. All information is current as of the date of this document and is subject to change without prior notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making, or asset management activities of any value. These returns come from hypothetical portfolios consisting of Zacks = 1 rank stocks that were rebalanced monthly with no transaction costs. These are not the returns from actual portfolios of stocks. The S&P 500 is an unmanaged index. Please visit https://www.zacks.com/performance for information on the performance figures shown in this press release.
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Altair Engineering Inc. (ALTR): Free Stock Analysis Report
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