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Granite Construction (GVA) could be |
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looking at a nice contract with the bill. |
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Released on Monday, September 12, 2011, 5:00 PM ET
Pittsburgh, PA (SpeculatingStocks) - Mr. Obama's Jobs bill may have more initial benefit than you might expect. In the bill there is a provision for a $10 Billion stimulus to construction, specifically highway repairs, and another $50 Billion allocated toward the transportation sector.
How do you get a piece of the pie?—by getting into the construction and transportation industry, of course. The contracts signed by the government with these companies will most likely generate great returns on the stock price.
It would be best to diversify across the entire industry, but we cannot list every stock here, so we have selected a few contract hopefuls which you may be able to profit off of.
Granite Construction Inc. (NYSE:GVA), could be looking at a nice contract, if the bill passes Congress. Currently trading at $19.05 per share it has a long way to go before capping its 52-week range of $29.73 per share.
GVA’s financials seem to be in good order, even to sustain the short decrease in operating profit that they reported in the quarter ending March 31st, 2011. Running with total assets of 1.5 Trillion dollars and a total debt to asset ratio of 5.48, the company is strong and even if they don’t gain a contract or the bill doesn’t pass through Congress, their stock should still sustain a nice return.
In the transportation sector RoadRunner Transportation Services Hold. (NYSE:RRTS), is a good transportation company which offers shipping and logistical management services to its customers. It is currently trading at $14.78 per share (4:00 PM EDT) and it has shown positive net income on its financial statements for the last 4 quarters. Its balance sheet is also fairly strong with a current ratio of 1.89.
If Obama’s jobs bill does pass the House and Senate in its entirety then you will most likely see a gain in both of these sectors, shop around for great buys they will be out there.
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