Infrastructure stocks are set to outperform over the next decade as the United States ramps up infrastructure spending.

Under the Infrastructure and Jobs Act, the Biden Administration’s Bipartisan Infrastructure Bill is one of the largest infrastructure bills in U.S. history. This new deal will drive investment in public infrastructure to build roads, bridges, rails, schools, high-speed internet, access to clean drinking water and widespread clean energy infrastructure.

The bill is expected to provide $1.2 trillion in spending for the U.S. economy over the next 5 years.

As of May 2023, the Biden Administration has already committed $220 billion in spending to more than 32,000 projects across all 50 states.

With infrastructure investments on the rise, these three infrastructure stocks will help lead the United States’ next economic expansion.

Below are my top three high-potential infrastructure stocks to buy right now!

Deere & Company (DE)

Deere & Company (NYSE:DE) has largely underperformed the broader market despite strong top line and EPS growth last year.

In 2022, Deere saw total net revenues of $52.6 billion, up 19% year-over-year (YoY). Net income was $7.13 billion, up 19% YoY.

Deere was able to weather supply chain constraints and ongoing macroeconomic headwinds in 2022 that severely affected the infrastructure equipment market. The company’s resilience and execution proved that management was well-equipped to manage changing priorities.

The demand for agricultural equipment has remained high, resulting in sustained growth and stronger liquidity.

In Q3 2023, Deere saw a net income of $2.98 billion, up 58% YoY. EPS (earnings per share) came in at $10.20, up 65% since last year. The company alluded to growth strong order book value and industry growth fundamentals. However, the market may be mispricing Deere’s EPS growth in 2023.

The company projects a full-year 2023 fiscal net income in the $9.75 to $10.00 billion range, up from $8.0 to $8.5 billion. That suggests Deere’s net income could surge more than 35% in 2023.

Deere is currently trading at just 1.94x its FY2023 sales, and the stock is down 8% year-to-date (YTD).

While the market ignores Deere’s 2023 EPS growth, investors should buy the stock before the share price catches up with the company’s fundamentals.

Caterpillar (CAT)

Caterpillar (NYSE:CAT) stock has responded favorably to the growing infrastructure spending and equipment demand.

The company surged to record highs earlier this month after reporting its Q2 2023 financial results. Caterpillar revenues this quarter grew to $17.3 billion, up 22% compared to 2022. Net income came in at $2.92 billion, up 74% YoY.

EPS was $5.67, up 81% in 2023 compared to 2022. Caterpillar’s chief financial officer (CFO) said that growth was supported by higher prices and volume, as well as supply chain constraints alleviating in 2023.

Caterpillar’s free cash flow has also grown favorably over the last year. That led to a dividend increase of 8%, proving that the company’s liquidity position remains strong.

For the first half of 2023, Caterpillar saw an operating cash flow of approximately $4.8 billion. CAT ended the quarter with $7.4 billion in cash, returning $2 billion to shareholders through share buybacks and dividends.

As the company continues to focus on sustained profitability, Caterpillar remains one of the best infrastructure stocks to buy for 2023.

GFL Environmental (GFL)

GFL Environmental (NYSE:GFL) is one of the best infrastructure stocks to buy for 2023.

The company is currently up 11% YTD, as they focus on deleveraging and accelerating profitability.

After going public in 2020, the stock saw a large decline as the stock market feared the impacts of Covid-19.

However, as monetary policy changed swiftly and central banks started printing money, the stock came roaring back.

GFL Environmental has seen mixed results in the past 24 months as it battled supply chain constraints and looming debt. The company has since been addressing its debt problem, selling off assets and reducing leverage as interest rates rise in 2023.

In Q2 2023, the company saw its revenue up 14% YoY to $1.94 billion. Net income surged to $294.9 million, up more than 250% year-over-year. GAAP EPS was up 470% in the quarter YoY.

The company’s vertically integrated infrastructure services make it well-positioned for future growth. While CAT’s debt problem may be an issue, the company is in the midst of a deleveraging cycle. That will allow it to invest in long-term growth and continue its mergers and acquisitions strategy in areas such as renewable natural gas (RNG).

With a growing demand for waste management and infrastructure services, GFL Environmental should be on your buy list.

On the date of publication, Terel Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.