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2 Stocks to Benefit from the Infrastructure Bill
Stock Analysis & Ideas

2 Stocks to Benefit from the Infrastructure Bill

ChargePoint (CHPT) and Blink (BLNK) design and manufacture electric vehicle (EV) charging stations. I am bullish on these stocks. (See Analysts’ Top Stocks on TipRanks)

It’s been the talk of Capitol Hill, Wall Street, and Main Street for much of 2021.

The on-again, off-again negotiations surrounding the U.S. infrastructure bill are finally coming to a close, it seems.

Getting the bill passed by the House of Representatives was just as difficult as getting it through the Senate – but at long last, the bill is on its way to President Joseph Biden’s desk to be signed into law.

Naturally, investors will want to know how to capitalize on this massive spending bill for potentially powerful returns.

There are a number of market sectors which might benefit – and two stocks in particular which deserve your attention.

What’s in the Infrastructure Bill?

After a prolonged deadlock, the House passed the roughly $1 trillion infrastructure bill on November 5.

Its official name is the Infrastructure Investment and Jobs Act. Given the bill’s name, it’s unsurprising that it would allocate funding towards America’s infrastructure.

More specifically, the bill would assign $110 billion in funding for roads, bridges, and other major infrastructure-related projects.

Those funds would also include $39 billion to modernize and make public transit more accessible to the disabled and elderly.

Another $66 billion would go towards rail maintenance, modernization, and expansion.

No major surprises yet – but here’s where it gets really interesting.

$7.5 billion will be spent on the implementation of a network of EV chargers. Plus, another $7.5 billion will be allocated towards zero-emission or low-emission buses and ferries.

Two Infrastructure Stocks to Consider Now

A number of major stock-market index funds already include large-cap businesses that either build roads and bridges or produce the materials for these types of projects.

So, there’s a pretty good chance that you might already be invested in these types of companies.

On the other hand, these funds don’t necessarily include businesses that would benefit from the billions of dollars that will be spent on the build-out of America’s EV charging station network.

The two clearest examples of investable companies in this specific niche market are ChargePoint and Blink.

Surely, it’s not a coincidence that both CHPT and BLNK stock were rallying 8% to 9% on the Monday morning following the House’s passage of the infrastructure bill.

Granted, both ChargePoint and Blink have negative per-share earnings, on a trailing 12-month basis.

This is still a fairly new technology, so don’t expect these companies to be profitable today or next week.

With the government’s massive financial commitment to develop its EV charging infrastructure, though, ChargePoint and Blink could soon improve their bottom-line results.

Wall Street’s Take

According to the Wall Street consensus rating, CHPT is a Moderate Buy, based on seven Buys, two Holds, and one Sell rating assigned in the past three months. The average ChargePoint price target is $34, implying 29.5% upside potential.

Meanwhile, Wall Street’s consensus rating has determined that BLNK is a Hold, based on one Buy and four Hold ratings. The average Blink Charging price target is $32.25, implying 6.6% downside potential.

The Takeaway

As shown above, the analysts’ predictions tend to favor CHPT over BLNK stock.

At the end of the day, however, the passage of the infrastructure bill in Congress should greatly benefit both ChargePoint and Blink.

So, with the build-out of America’s EV charging station network in sight, there’s plenty for investors to get charged up about.

Disclosure: At the time of publication, David Moadel did not have a position in any of the securities mentioned in this article.Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only. Tipranks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. Tipranks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by Tipranks or its affiliates. Past performance is not indicative of future results, prices or performance.

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