The U.S. government is allowing American infrastructure to crumble before our eyes.
It's been frustrating to watch. But it's only a matter of time before Congress gets its act together.
And when it does, this top infrastructure stock could skyrocket. In fact, analysts are already projecting a 93% share price gain over just the next 12 months...
Why Congress Will Have to Break the Bank on Infrastructure
Infrastructure spending is something politicians love to talk about during election season. After all, infrastructure spending creates jobs, raises the tax rolls, and makes life a little easier for all of us.
But if you've flown into either of the New York City airports or ridden Amtrak from Washington, D.C., to Boston, you know the talk stops when the election is over.
We have driven from Orlando to South Texas several times in the last few years, and I can tell you that parts of I-10 through the South feel more like a wagon path than a modern highway.
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Every four years, the American Society of Civil Engineers puts out a report that grades U.S. infrastructure. It look at roads, bridges, airports, railroads, water system, the electrical grid, and other essential infrastructure here in the United States. The latest report was out last year, and to our national disgrace, we got a D+ for the condition of our overall infrastructure here in the United States.
The report is depressing to read. There were 240,000 water main breaks in the United States last year. 15,500 dams across the country are considered to be in hazardous conditions. 640,000 miles of high-voltage electrical lines aren't at full capacity. One out of every five miles of highway pavement are in poor condition. More than 56,000 bridges are structurally deficient. It reads more like a report from some backwater third-world nation and not the United States of America.
The simple reality is that the repair and replacement projects for our roads, water systems, electrical grid, bridges, and other critical infrastructure needs to be done, and it needs to be done sooner rather than later.
The problem is that politicians are involved, and it is easier to talk about fixing things than it is to actually spend the money. Far better to waste the money on failed social projects and meaningless little wars that keep the voting bases in line.
But rest assured, the day of reckoning is coming...
With each new train derailment, dam collapse, failed water pipe, and angry commuter with a blown tire caused by horrible road conditions, it comes closer to the day congressmen will release the purse strings. At least, that'll be the only way they'll keep their jobs.
And when that happens, the best infrastructure stocks, like this one, will be soaking in this fountain of money.
Plus, this particular stock just flashed this major "buy" signal...
This Is One of the Best Infrastructure Stocks You Can Buy
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Tudor Perini Corp. (NYES: TPC) will be a significant beneficiary of any congressional largesse, and it's already one of the best infrastructure companies you can own.
Tudor Perini is a construction company that is engaged in just about every aspect of the infrastructure business. It builds roads, highways, tunnels, subways, hospitals, casinos, hotels, electrical plants, water systems, and just about anything else you can think of it when it comes to what we call "infrastructure."
Although the federal money is currently just a trickle, state and local projects have kept the company busy enough to have reported a new record number of projects in its business backlog.
It is working on a new terminal at the Newark Airport, a project worth more than $1 billion in potential revenue. It is helping build the California High-Speed Rail Project and repairing the I-74 bridge in Iowa. Tudor just won a bid to build a light rail system in Minneapolis. It won a contract to build a $109 million tunnel for the Los Angeles Department of Water and Power.
In all, it has a project backlog of more than $8 billion to keep it busy.
The money is coming in a steady stream, but when a nationwide federal infrastructure program is finally announced, that stream will become a tsunami. And Tudor Perini will get its share of it - and then some.
According to the Civil Engineer Society, the total need for infrastructure here in the United States is over $4 trillion over the next decade.
There is a lot of money to be made in this stock, but the key is going to be patience and a willingness to accumulate on weakness. Most infrastructure-related stocks, Including Tudor Perini, are down so far in 2018, as results have disappointed short-term-oriented investors. That's a big mistake, and one you can capitalize on.
The infrastructure need has been known for some time now, but thanks to our incredibly inept criminal class residing in the Capitol building, the money has not been allocated, much less spent. Eventually, the money will be spent as these geniuses finally figure out that the friends and relatives of the people who die on broken roads, bridge collapses, electrical failures, and train derailments are highly unlikely to vote for them at election time. When that happens, Tudor Perini and other select infrastructure bets become the growth stock leaders of the day.
And right now is the best time to buy into this stock...
Tudor Perini shares fetch a little over 8% operating cash flow, and that's a decent entry point for a company with the ridiculously high long-term appreciation potential of this company. We are paying less than the net worth of the company, so in theory we could sell off all the assets, pay off the debt, and have a small profit.
We are buying a potential bonanza of profits at a bargain price, and last time I checked, that was a pretty good way to get rich as a stock investor.
We are not the only ones that have a vested interest in seeing the company and the stock do well. Insiders own 24% of the shares, so the only way they can get rich off their shares is to make us rich at the same time. Skin in the game keeps everyone's interests aligned, so we call all make money together.
Wall Street analysts are giving the stock a high price target of $38 a share. That's an implied gain of 93$ from today's share price of $19.73.
And with a perfect Money Morning VQScore™ of 4, this company just became a must-own.
But don't stop there. This secret method can uncover even more winning stock picks...
This Is How You Find the Next Big Thing
When looking for the next big winners, most investors turn to the "Google-Search Method" of stock picking.
They'll spend endless hours doing Google search after Google search - compiling a list of potential candidates.
The problem with this method is most of the information comes from journalists reporting the news, not bona fide market analysts giving you expert research.
So you end up with a list of companies getting the most coverage, but not the best investments.
Instead, you should see this.
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About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of Peak Yield Investor.