Infrastructure stocks aren’t always the most talked about. On the investment side, technology stocks such as chipmaker Nvidia or weight loss player Novo Nordisk have been in the headlines last year. But investors looking to diversify their portfolios away from popular names and themes can consider infrastructure themes, said Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management. In an interview on CNBC’s “Street Signs Asia” on Oct. 2, Slimone said the industry is “very strong in the United States,” citing increased government spending on infrastructure and the need to rebuild from Hurricane Helene. The rationale for his bullish stance. “One, state governments are investing a lot of money in infrastructure. But two, the sad reality is, parts of our country are in western North Carolina, Georgia, eastern Texas, Massachusetts The area has just been destroyed and they will have to rebuild roads and bridges,” he said. Hurricane Helen hit the Big Bend, Florida, area on September 26, causing widespread damage, leading to collapsed roads, damaged infrastructure, and flooding. As of October 4, the death toll had exceeded 200. Equipment rental company United Rentals. Headquartered in Connecticut, the company has 1,520 rental locations in North America, 38 in Europe, 23 in Australia and 19 in New Zealand, making it one of the largest equipment rental companies in the world. United Rentals’ URI YTD mountain Year-to-date stock United Rentals’ stock, which trades on the New York Stock Exchange, is up more than 40% year to date and more than 80% over the past 12 months. Analysts at KeyBanc Capital Markets view United Rentals as an “interesting acquirer” because the company “drives solid returns through large deals every year.” One of the deals was its acquisition of construction company and hardwood underlayment supplier Yak Access, which was completed in March. “We believe the company will likely continue to pursue higher-margin specialty deals in increasingly niche areas as management works to improve its competitive moat,” they added. 24 of the 24 analysts who cover the stock, according to FactSet data Among analysts, 11 have a buy or overweight rating, 7 have a hold rating, and 6 have an underperform or sell rating. The stock’s average price target is $759.47, with downside potential of 4.6%.
