It is election time in the US. Elections often mean the announcements of pro-infrastructure spending policies. It also means new initiatives being announced in the run-up to Election Day. The elections are, therefore, a great time for stocks that are involved in home building, road building, and other infrastructure-related activities. One such stock is Vulcan Materials. It is the largest American producer of construction aggregates and often counted among the best basic materials stocks for 2020.
Infrastructure has become a political topic
It appears that the Democrats and the Republicans have recognized the need to boost infrastructure spending. The recognition is not simply because American infrastructure is aging. It is also because a significant outlay on upgrading the American infrastructure can act as a catalyst to re-energize an economy that has been severely impacted by the COVID crisis. President Trump has committed to spending $1 trillion on highways, rural broadband, 5G, and other non-transportation infrastructure. Joe Biden, on the other hand, has announced his plans on a $2 trillion outlay that will focus on clean energy and sustainable infrastructure, rural broadband, and 5G.
So Which Stocks Are Among The Best Basic Materials Stocks To Buy In 2020?
If you are looking to ride the infrastructure policies that are likely to be announced in the coming months, then the building and basic materials sector is a good place to start. If you are wondering what are the best basic materials stocks to buy in 2020, then you might want to check Vulcan Materials Company. The firm grew its earnings by about 8% in Q22020. The Q32020 earnings call is scheduled to take place in the first week of November. Along with Vulcan Materials, Martin Marietta Materials and Eagle Materials are also stocks to consider.
Vulcan Materials has recovered quite well from the March market crash. Its stock has risen by about 92% since hitting a low around March 20. Vulcan also announced a quarterly dividend of $0.34 per share on October 9th.