Navellier Growth: your source for market-beating growth stocks

 

Just like the Baby Boomers, our nation's infrastructure is starting to show signs of aging. A crack here, some wear and tear there–our highways could definitely use a facelift. And it's not just our roadways that are getting older: Sewer systems and electrical plants across the country are also in need of repair and replacement. New Orleans is still in the process of being completely rebuilt. Steam pipes in Manhattan have burst in recent months. Railroads are plagued with broken track, and Amtrak has had continual problems, particularly in the heavily used North East corridor. The states and cities of the United States, along with the Federal Government, are going to have to spend billions to replace or repair our infrastructure in the years ahead. This is great news for my Emerging Growth stocks.

Right now, my fundamental and quantitative measurements indicate that the money to fix or replace our nation's aging infrastructure is starting to flow, and so I've alerted my subscribers about this new trend by recommending several companies for them to buy in our Emerging Growth portfolio. Here's a peek:

L.B. Foster (FSTR) makes rails and tracks for railroads and mass transit systems. In addition, the company makes earth wall and piling systems used in highway construction. FSTR also makes the special H bearing pilings that are used to support bridges and high-rise buildings. A lot of the cash that's going to be spent fixing our national infrastructure is going to flow in this company's direction: In fact, in its latest quarter, the company reported that earnings had grown by almost 400% year over year and net profit margins were expanding!

One of our top Emerging Growth stocks is Valmont Industries (VMI). The company makes engineered support structures. They sell them to the highway construction industry as well as to utility companies. Earnings growth at this company is tremendous, up almost 100% last quarter. Sales are growing 50% annually, and margins are expanding as the company begins to benefit from this tremendous trend in the world today. VMI also sells its products to China as well as to the agricultural industry–two areas we believe have tremendous growth potential going forward.

Bottom Line: The infrastructure in the United States is in bad shape in a lot of places. But those companies involved in the rebuilding process stand to make a tremendous amount of money. All told, we have four companies on our Emerging Growth Buy List profiting from this industrial building boom. My fundamental and quantitative indicators once again caught the trend early, so we own all the stocks that are in this sweet spot! To find out more about our four Emerging Growth infrastructure winners, try a risk-free trial of Emerging Growth today!

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