US Infrastructure Stocks: A 2017 Perspective

Introduction

In 2017, the United States infrastructure sector witnessed a surge in investor interest, driven by various factors such as government initiatives and economic growth. This article provides an overview of the infrastructure stocks that were in focus during that year, highlighting key trends and potential investment opportunities.

Government Initiatives

One of the primary reasons for the increased interest in infrastructure stocks in 2017 was the announcement of the Trump administration's infrastructure plan. This plan aimed to invest $1 trillion in infrastructure projects across the country, focusing on roads, bridges, airports, and water systems. The plan proposed public-private partnerships (P3s) to fund and manage these projects, which in turn, attracted numerous investors to the infrastructure sector.

Trends in Infrastructure Stocks

Several infrastructure stocks experienced significant growth in 2017, driven by various factors:

• Transportation Stocks: Companies involved in the transportation sector, such as airlines, trucking companies, and railroads, saw a boost in their stock prices due to increased economic activity and government support. For instance, Union Pacific Corporation (UNP) and CSX Corporation (CSX) were among the top-performing stocks in the transportation sector.

• Energy Stocks: The rise in energy prices, especially natural gas and crude oil, led to increased investments in energy infrastructure projects. Companies such as Enterprise Products Partners LP (EPD) and Kinder Morgan, Inc. (KMI) benefited from this trend, as they are involved in the transportation and storage of energy products.

• Utilities Stocks: Utilities companies, such as Exelon Corporation (EXC) and Duke Energy Corporation (DUK), saw increased investor interest due to their stable revenue streams and the need for reliable energy infrastructure.

Case Studies

• Enterprise Products Partners LP (EPD): As a leading energy infrastructure company, EPD experienced a significant increase in its stock price in 2017. This growth was driven by its expanding pipeline network, which facilitated the transportation of natural gas and crude oil. Additionally, the company's focus on cost management and operational efficiency contributed to its strong performance.

• Kinder Morgan, Inc. (KMI): Another prominent player in the energy infrastructure sector, KMI's stock price surged in 2017 due to its vast network of pipelines, terminals, and storage facilities. The company's commitment to diversifying its energy infrastructure assets and expanding its global footprint played a crucial role in its success.

Conclusion

In 2017, the US infrastructure sector experienced a surge in investor interest, driven by government initiatives and economic growth. Infrastructure stocks, particularly those involved in transportation, energy, and utilities, witnessed significant growth due to various factors. Investors looking to capitalize on the infrastructure sector's potential should keep a close eye on these key trends and consider investing in well-performing companies within the sector.

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