Before President Trump’s Wall Is Built, These Are Five Stocks to Watch

President Trumps wall President Donald Trump is pushing forward with his plans to build a wall along the U.S.-Mexico border. And because this is such a massive undertaking, the profit opportunities will be undeniable.

On March 17, the plans for President Trump's wall started to take shape.

That's when the Trump administration released guidelines for contractors to build the border wall. And the cost is massive...

According to internal reports from the U.S. Department of Homeland Security that were seen by Reuters on Feb. 9, the "Trump wall" could cost as much as $21.6 billion. And businesses from steel companies to security firms could each see a piece of that huge contract.

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President Trump & the Wall

That's why today, we want to provide Money Morning readers with five stocks to know about now if President Trump's border wall is built.

We'll get to those stocks in just a bit.

But first, here are the most important details from President Trump's border wall plans that cannot go unmentioned....

Here's What President Trump's Wall Will Look Like

In the outline, there are a total of 13 threshold and objective requirements for the wall.

A major focus for contractors will be the height of the wall. The outline says the border project should be physically imposing in height, and it would ideally be a 30-foot-high wall. However, designs that are at least 18 feet in height are considered acceptable.

The outline says the wall should be impossible to climb over without assistance, like a ladder.

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The second major focus for contractors will be durability. The outline says the wall should deter a breach larger than 12 inches in diameter for 30 minutes. It will need to be durable enough to withstand sledgehammers, pick axes, chisels, and battery-operated cutting tools for that time.

Finally, contractors have to prevent easy access through digging. President Trump's wall should prevent tunneling or digging for a minimum of six feet "below the lowest adjacent grade."

According to Bloomberg, finalists for the giant construction project will be selected at some point in April. But before that happens, we want to make sure you know now about five stocks that could skyrocket if construction begins.

In fact, one of these stocks is projected to climb nearly 100% in the next year...

5 Stocks to Watch Now Before the "Trump Wall" Is Built

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President Trump Wall Stock to Watch No. 5: Boeing Co.

The first stock to watch if President Trump's wall is built is Boeing Co. (NYSE: BA).

Now, I know what you're asking: Didn't President Trump tweet negatively about Boeing? The answer is yes. On Dec. 6, 2016, the POTUS said Boeing's costs for the new 747 Air Force One were "out of control."

trump’s twitter

However, things have changed since then. President Trump visited a Boeing factory in South Carolina in February to help unveil the company's 787 Dreamliner.

And according to Business Insider, the U.S. president said he wanted more products like Boeing's made in America.

"We want products made by our workers, in our factories, stamped with those four magnificent words: Made in the U.S.A.," President Trump reportedly said to the factory workers.

Boeing could help the president by providing high-tech surveillance security for the border, an area where it already has experience under former President George W. Bush.

The aerospace company was awarded a contract in 2006 to secure the border, but the project was eventually cancelled in 2011. President Trump could revisit the plan and hire Boeing to complete the job.

A major contract like that would reassure shareholders who are still worried about President Trump's previous comments about the company.

Bernstein Research has a one-year price target of $208 for the BA stock price. From today's (April 11) opening price of $175.74, that's a potential profit of 18.35%. Any news about Boeing's connection to the border could send the stock even higher.
President Trump Wall Stock to Watch No. 4: Martin Marietta Materials Inc.
Martin Marietta Materials Inc. (NYSE: MLM) supplies crushed stone, sand, and gravel for the construction of infrastructure, residential, and nonresidential projects.

It operates through three segments, which include its:

  • Aggregate business
  • Cement business
  • Magnesia business

Martin is the largest producer of cement, concrete, and aggregates in Texas, and that gives the company a clear advantage.

According to Bloomberg, roughly two-thirds of the proposed border wall will cut through Texas. Martin Marietta CEO Ward Nye told Bloomberg in March that "if there's any heavy-side activity in Texas, we'll be a big part of that."

The MLM stock price opened today at $212.31 per share, and analysts have an average one-year price target of $242 for MLM stock, according to FactSet.

But that price target may be too conservative...

Longbow Research has a one-year price target of $265, which could be a profit of 24.81%.
President Trump Wall Stock to Watch No. 3: Vulcan Materials Co.
Vulcan Materials Co. (NYSE: VMC), like Martin Marietta, supplies construction aggregates.

But according to its website, Vulcan Materials is the largest producer of construction aggregates in the country. It's also a major producer of aggregate-based construction materials like asphalt and ready-mixed concrete.

The company's size and expertise make it a prime candidate to supply construction aggregates to the border wall.

And aside from the wall project, the company should also see an uptick in revenue if President Trump is able to increase spending on infrastructure.

Vulcan already operates in the top markets in the country. According to the National Stone, Sand, & Gravel Association, the top aggregate markets through 2020 are Virginia, Georgia, California, and Texas.

Those five states accounted for 59% of Vulcan's revenue in 2015. So not only is Vulcan positioned to make money from the top aggregate spenders, it could make even more money from additional demand across the country.

Analysts at Stifel Nicolaus believe the VMC stock price could climb to $148 over the next 12 months. From today's opening price of $117.35, that's a potential profit of 26.11%.
President Trump Wall Stock to Watch No. 2: Eagle Materials Inc.
Eagle Materials Inc. (NYSE: EXP) provides construction products for residential, industrial, commercial, and infrastructure construction. The company also supplies construction products and building materials for oil and natural gas extraction.

And its offerings in the construction and energy sector make this a must-watch stock under the Trump administration.

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Not only could Eagle Materials get a piece of the $21 billion for the border wall, but the company could also benefit from pipeline expansion plans.

On March 24, the Trump administration announced it had approved the Keystone XL pipeline. Although the steel was already bought for the project, this could foreshadow more pipeline projects to come. Those projects could use construction products from Eagle Materials.

MotherJones.com reported on March 1 there are currently eight U.S. oil and gas projects in the works.

Over the last 12 months, the EXP stock price has climbed 31.86%. And analysts believe there is still room for the stock price to climb.

From today's opening price of $94.96, five firms that cover EXP stock believe it could climb to $120 per share in the next year.

That's a potential profit of 26.36%.
President Trump Wall Stock to Watch No. 1: United States Steel Corp.
Shares of United States Steel Corp. (NYSE: X) have climbed 56.2% over the last 12 months.

That's because President Trump wants the nation's pipelines to be constructed or reinforced with American-made materials, to the extent allowable by law.

"I was signing the order, and I said, where did they buy this steel? I didn't like the answer. I said, who fabricated the steel? I didn't like the answer. I said, from now on we're going to put a clause - got to be made in America. We want American steel, made in America," President Trump said on April 4 at the 2017 North America's Build Trades Unions National Legislative Conference.

Aside from pipeline revenue, U.S. Steel could also be a major player in the border wall construction. According to NationalMemo.com, the wall would need to be reinforced by steel (rebar).

The rebar could account for roughly 3% of the total wall size.

And because of the amount of projects U.S. Steel could soon be working on, some analysts have a very aggressive price target for X stock.

Analysts at Cowen and Co. have a one-year price target of $60 for the X stock price. From today's opening price of $31.16, that's a potential profit of 92%.

The Bottom Line: If President Trump's wall is built, security and construction companies could generate hundreds of millions and even billions in revenue. The five stock symbols of the companies to watch are BA, MLM, VMC, EXP, and X.

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