Infrastructure Boom: Why This Legendary Investor and Street Experts Are Betting Big on These 2 Construction Stocks

The construction and infrastructure sectors are experiencing a significant tailwind, and prominent investor Steve Eisman—known for his prescient call on the 2007-2008 housing crash—is leading the charge. Unlike pessimists predicting another housing downturn, Eisman has pivoted to what he terms a “return to fundamentals” strategy, positioning capital in traditional industrial plays poised to benefit from Washington’s massive infrastructure spending initiatives.

“This marks the first comprehensive industrial policy the U.S. has implemented in decades,” Eisman, now managing director at Neuberger Berman, recently noted. “Government spending takes time to permeate the economy. Most capital allocated through these programs hasn’t yet been reflected in current stock valuations.” His conviction has shaped a thesis favoring construction firms, utilities, and materials producers over speculative tech disruptors.

The implications are substantial. With billions earmarked for roads, bridges, and modernization projects, two stocks have caught the Street’s attention as prime beneficiaries. Both command Strong Buy ratings from analysts, suggesting meaningful upside ahead.

Vulcan Materials: Aggregates Powerhouse Capturing Growth Momentum

Vulcan Materials Company (VMC) stands as America’s premier construction materials supplier, tracing its lineage back to 1909. The company controls an extensive network of quarries and distribution operations, supplying crushed stone, sand, and gravel essential for infrastructure and residential construction nationwide.

Recent financial results underscore the tailwinds. Q2 revenue surged 8.2% year-over-year to $2.11 billion, exceeding consensus by $60 million. More impressively, adjusted EBITDA jumped 32.2% to $595.3 million versus $450.2 million in the prior-year period, beating forecasts of $529 million. EBITDA margins expanded 520 basis points to 28.2%, while adjusted EPS of $2.29 crushed estimates by $0.37.

Management lifted full-year adjusted EBITDA guidance to $1.9-2.0 billion, up $150 million from February’s projection—a powerful signal of demand sustainability.

Stifel’s Stanley Elliot, a 5-star analyst, remains enthusiastic about VMC’s positioning. “We see VMC’s aggregate business as a key lever benefiting from fiscal stimulus combined with recovering residential and non-residential construction markets,” Elliot explained, noting margin expansion potential in downstream operations. His $260 price target implies 29% upside, supported by a Buy rating.

The analyst consensus validates this view: 13 Buys versus 1 Hold produces a Strong Buy rating, with an average price target of $251.17 implying ~25% one-year returns.

Construction Partners: A Generational Infrastructure Play

Construction Partners, Inc. (ROAD), headquartered in Alabama, operates as a specialized civil infrastructure contractor serving the Southeast and beyond. Its expertise spans road construction, bridge building, and highway maintenance—the precise categories receiving federal funding acceleration.

The growth trajectory is compelling. Revenue doubled from $785.7 million in fiscal 2020 to $1.30 billion in 2022, while backlog surged from $608.1 million to $1.41 billion. The company guides for FY 2023 revenue of $1.547-1.557 billion with net income reaching $44.8-47 million—a 110% jump from 2022’s $21.4 million. FY 2024 forecasts hint at further acceleration: $1.75-1.825 billion in revenue and $63-70 million in net income.

Raymond James analyst Patrick Tyler Brown, ranked among Wall Street’s elite, views ROAD as a generational infrastructure beneficiary. “ROAD captures unique upside from the Infrastructure Investment and Jobs Act (IIJA) combined with state-level transportation funding surges,” Brown emphasized. “We project organic growth in the high-single-digit range over the next several years as federal mechanisms and near-shoring trends intensify.”

Brown’s conviction translates to a Strong Buy rating with a $45 price target—suggesting 18% appreciation potential. His bullish stance aligns with four peer analysts, all positive, cementing ROAD’s Strong Buy consensus. The $43.40 average target points to ~14% upside within 12 months.

The Strategic Thesis: Why Now?

Both VMC and ROAD embody the infrastructure-driven thesis that resonates with sophisticated investors including Steve Eisman, whose track record of identifying market dislocations commands respect. As government spending ramps gradually into the broader economy—creating an extended runway for demand—these traditional plays positioned at the foundation of American infrastructure development represent compelling value propositions for portfolios seeking exposure to generational policy shifts.