3 Infrastructure Stocks Wall Street Predicts Will Rally by 20% or More

© Reuters. 3 Infrastructure Stocks Wall Street Predicts Will Rally by 20% or More

The U.S. Senate is expected to pass a highly anticipated infrastructure bill soon, following months of debate between Democrats and Republicans. As such, Wall Street analysts expect investors to invest heavily in infrastructure stocks Rio Tinto (NYSE:RIO), Astec Industries (NASDAQ:ASTE), and Columbus McKinnon (CMCO), given their immense long-term growth potential. They believe this will facilitate a 40%-plus gain in their share prices in the near term. Read on.A highly anticipated $1.20 trillion infrastructure stimulus package is currently being debated in Congress. Despite a recent setback when the bill failed to secure votes in the Senate, 22 Democratic and Republican senators expect to release an approved package soon. Approximately $579 billion of the total stimulus package is expected to fund the construction of roads, bridges, and broadband infrastructure nationwide.

In addition, President Biden has floated a $3.50 trillion budget resolution bill proposal that focuses on social and environmental factors, including hefty investments in the clean energy space, which was previously cut from the infrastructure package. Senate Majority Leader Chuck Schumer expects this budget blueprint to “allow us to pass the most significant legislation to expand, support and help American families since the New Deal...This is generational, transformational change to help American families who need the help in this rapidly changing world.”

Wall Street analysts expect these “once-in-a-generation” investment packages to revolutionize the country’s infrastructure. Furthermore, the growth potential of construction material companies is likely to attract investor attention soon. Consequently, analysts expect popular infrastructure stocks Rio Tinto Group (RIO), Astec Industries, Inc. (ASTE), and Columbus McKinnon Corporation (CMCO) to rally by 20% or more in the near term.

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