There is no doubt that the market is fairly volatile at this point in time and in such times, investors are often prone to look for ‘safe’ stocks. One of the sectors to offer such stocks is perhaps the infrastructure sector.
Those are companies that generally tick along smoothly and an investor can ‘buy and forget about the stock. In this article, we are going to look into three infrastructure stocks that you would consider at this point in time.
The first infrastructure stock to perhaps add to your watch list is that of Federal Signal. The company is involved in selling alarm systems and street sweepers, but the simple business has propelled the stock into a star performer.
Over the course of the past decade, that stock has clocked cumulative returns of 958%. In this regard, it ought to be noted that sales of the products that Federal Signal offers are directly linked to infrastructure spending. However, the management has acquired more businesses in recent times in order to diversify and offer its products to a range of industries. It is a stock that could be tracked by investors.
It goes without saying that the railway industry may not be everyone’s choice of investment but there are certain exceptions in which there might be some value and the Canadian Pacific Railway is probably one of them.
The thing to keep in mind with regards to the company is the possible acquisition of Kansas City Southern. More importantly, it ought to be noted that in recent years, Canadian Pacific Railway is also one of the few railway companies which have been fairly efficient. Hence, in light of these factors, it may be a good time to start tracking the stock.
As the name suggests, Waste Management is involved in the business of handling trash and it is a business that is going to continue unless there is some sort of paradigm shift in the world. The company has been in the business for decades and has managed to deliver excellent returns to its investors.
While it is true that growth in revenues has not been particularly stellar, it should be noted that the company has also made acquisitions in order to generate further growth. It could be one of the safest stocks in the market at this point.