These stocks could be winners as lawmakers slog toward an infrastructure deal
Wall Street analysts continue to see materials stocks as clear winners as the White House and Senate Republicans inch closer to a sweeping infrastructure bill. Barclays wrote last week that it's unlikely that either President Joe Biden's or the GOP's infrastructure plan would include less than about $77 billion for updating the nation's deteriorated highways. "With the Senate GOP already having proposed $77bn, and the House Dems proposing $85bn, it's unlikely that highway and street funding would be lower than the GOP proposals," the brokerage wrote on May 21. That is likely to spell sharp demand for a variety of materials to help repair roads and bridges, including tons of cement and asphalt, Barclays explained. Those sales are likely to accrue to Vulcan Materials and Martin Marietta , the Barclays team wrote. Others say certain climate-friendly utility companies that can navigate any tax increases could be poised for outperformance if the Biden administration is able to strike a deal with congressional Republicans. While Wall Street's analysts do their best to keep clients updated on strategies to play the latest infrastructure headlines, the final composition of any plan to repair roads, bridges and waterways is far from certain. In the latest of the back-and-forth, Senate Republicans on Thursday debuted their $928 billion counteroffer to Biden as the two sides seek to bridge an ideological divide over the definition of "infrastructure." That proposal includes $506 billion for roads, bridges and major infrastructure project, $98 billion for public transit and $56 billion for airports. Analysts at Wolfe Research wrote in April that the Biden infrastructure and associated tax plan is "more good than bad" and adds to momentum behind the clean energy trade. "Clean energy is clearly the big winner in the Biden plan with extension of wind/solar credits, direct cash convertibility of those credits (no more tax equity) and a standalone storage credit," Wolfe's Steve Fleishman wrote last month. "On corporate tax changes, we view utilities as less exposed than most sectors since they can pass through changes to customers and have little foreign exposure," he added. Biden's latest offer to the GOP, announced last Friday, came in at $1.7 trillion. That represents a $600 billion cut to his original plan. That revision reduced the amount earmarked for rural broadband expansion, as well as funds for road and bridge repair. Despite their differences, both sides say they are still interested in working together and passing a bill within the next few months. — CNBC's Michael Bloom contributed reporting.

Vulcan Materials Company limestone quarry, Tuscumbia, Alabama. Carol M.Highsmith | Buyenlarge | Getty Images