Best Stocks to Buy Under Trump: Aecom (ACM)
Infrastructure spending was in the platform for both candidates during the race, so the most important factor isn’t Trump’s victory, but rather his rhetoric since Election Day.
Since November, there has been continued talk about how America’s roads, bridges and airports are aging and that some kind of infrastructure stimulus is necessary right away. That hints that this is not an empty promise, but something everyone in the GOP — and even some Democrats — will work toward in the New Year.
While multinationals like Caterpillar Inc. (NYSE:CAT) are popular stocks when it comes to infrastructure, I don’t like them as much because they lack a direct link to local spending in the U.S. Instead, I prefer the mid-cap industrial Aecom (NYSE:ACM) which generates over a third of its revenue directly from state, local and federal contracts here in the U.S.
After a $6 billion acquisition of rival URS in 2014, Aecom has plenty of scale and capacity to step up and profit from this trend. And while shares popped strongly right after Donald Trump’s election, ACM stock has faded away from its 52-week high in the past few weeks. This has provided a great opportunity to buy in before the next move higher.