Cash in on the rebuilding boom

Governments are allocating billions of dollars for the repair, renovation, and construction of bridges, roads, mass transit systems, and power grids. Here's a look at four promising infrastructure stocks.

Granite Construction
Granite Construction (GVA, $54), one of the nation's largest civil contractors, specializes in roads, bridges, and mass transit. It figures to be a major beneficiary of Safetea-LU, the 2005 law that provided $244 billion for projects that improve safety, reduce congestion, and protect the environment across the nation.

For example, the company and a partner won a $267 million contract to rebuild the U.S. 90 Bay St. Louis bridge in Mississippi that was destroyed by Hurricane Katrina. It also expects to capitalize on California's Proposition 1B, approved last year, authorizing nearly $20 billion in bonds for transportation spending.

The company expects to see its profit margins improve now that it is wrapping up several large projects that were dogged by cost overruns. The consensus among analysts is that earnings will jump an average 32% annually over the next three years, on revenue increases averaging 6% a year, according to research firm Capital IQ. Granite has little debt and a lot of cash. The stock yields 0.75% and trades at 14 times estimated 2008 earnings, vs. 15 times for the S&P 500.
Granite Construction General Cable Greenbrier Wesco
10 investments poised to soar Here are 7 stocks likely to rise steadily and reliably even in today's turbulent markets, and 3 mutual funds that offer growth potential with less risk. (more)
Fortune's 100 Fastest-Growing A stunning 37 of this year's fast-growers come from the energy sector, and metals companies make a strong showing, too, thanks to high commodities prices. (more)
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.