For Smooth Investment Returns, Consider Infrastructure Plays

A number of big trends are under way right now that will substantially change how the world lives and works in just a few years. Some of those trends will be bigger than others.

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  • One way investors can profit is to look for companies that can provide support to a number of those trends. It can make for a smoother way to invest, particularly with the longer-term in mind.

    For many of today’s tech trends, such as increased renewable power generation and the rise of electric vehicles, substantial improvements are needed for power grids. One company catering to that overall infrastructure need is Wesco International (WCC).

    That may explain why shares have nearly tripled the return of the S&P 500 over the past year. But the company is still getting started, with a low price to sales and price to earnings growth ratio. And trading at 11 times earnings, there’s room for more growth on multiple expansion alone.

    Action to take: Investors may like shares as a long-term play on many of today’s tech trends with less volatility. At present, shares don’t pay a dividend, but could down the line as growth starts to slow down.

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  • For traders, shares have been a bit rangebound in the past few months, but stand to break higher. The July $120 calls currently have a bid/ask spread near $16.50, making for a decently priced option capable of delivering mid-to-high double-digit returns in the months ahead.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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