Steve Eisman, of “The Big Short” fame, has been bullish on infrastructure stocks after studying the sector for the past two years, and here are his favorite companies. Investors who profited from the subprime mortgage crisis have increasingly favored infrastructure companies against a backdrop of rising government spending. Eisman, senior portfolio manager at Neuberger Berman, said he has narrowed the scope of investable stocks to 80 stocks. “Of those 80, I would say about 30 are very, very interesting. The other 50 are not that interesting right now,” he said on Bloomberg’s “Odd Lot” podcast. Among the stocks Eisman ditched are residential solar companies that have done well as major beneficiaries of zero interest rates during the Covid-19 pandemic. However, Eisman said these stocks have stalled as interest rates remain elevated. Instead, Eisman likes companies that sell solar panels to utilities, which he says are doing well from a fundamental perspective. Eaton Corp., which is in the business of electrifying factories, is one of the stocks he finds attractive. Eisman said he does not currently own the stock but has done extensive research on the company. The stock is up 36% this year after rising 53% in 2023. ETN 1Y mountain Eaton Corporation PLC The widely followed investor also revealed that he likes CRH PLC, a materials company headquartered in Ireland but with 75% of its business in the U.S. CRH is up this year after rising 73% last year about 24%. Eisman said he started buying the companies after they were relisted in the United States in September. CRH 1Y mountain CRH PLC Eisman rose to fame by shorting subprime mortgages before the 2008 financial crisis, chronicled in Michael Lewis’s “The Big Short” and the subsequent Oscar-winning film based on the book. Click here to listen to the original podcast.
